Bengaluru has emerged as the fastest-growing prime office market in the Asia-Pacific region after recording a sharp 14 percent annual rise in rents, according to Knight Frank’s latest Q1 2026 report.
The global property consultancy’s Asia Pacific Research, Office Markets – Q1 2026 report stated that Bengaluru outperformed 24 leading cities across the region, underlining India’s rising strength in commercial real estate.
Bengaluru leads regional growth
Prime office rents in Bengaluru rose to USD 36.84 per square foot annually, placing the city 19th among Asia-Pacific markets by cost, but first in annual rent growth.
Experts say strong demand for premium office spaces, rapid expansion of Global Capability Centres (GCCs) and the rise of flexible workplaces are driving this surge.
GCCs reportedly accounted for 41 percent of total office leasing in Bengaluru during the quarter.
Vacancy falls, demand rises
The city’s office vacancy level stood at 11.8 percent, indicating tightening supply in key business districts.
Analysts believe rents may continue to rise as multinational firms and technology companies expand operations in Karnataka’s capital.
Mumbai and Delhi also perform strongly
Mumbai recorded a 7.5 percent rent increase and leased a record 56 lakh square feet in a single quarter.
Delhi-NCR posted an 8.2 percent annual rise, remaining India’s most expensive office market at USD 72.33 per square foot.
Together, Bengaluru, Mumbai and Delhi-NCR leased 1.88 crore square feet of office space in Q1 2026.
India’s commercial rise continues
The report identified India and Australia as major drivers of regional office market growth, even as broader Asia-Pacific rent growth averaged only 0.8 percent.
For Bengaluru, the numbers reaffirm its position as India’s technology and business powerhouse.#Bengaluru #OfficeSpace #RealEstate #BusinessNews #Karnataka #newskarnataka
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